KORRUN(SZ:300577) Guotai Junan Securities·2024-04-30 01:32Investment Rating - The investment rating for the company is "Buy" with a target price of 24.34 CNY, maintaining the previous rating of "Buy" [2][4]. Core Insights - The company's Q1 earnings exceeded expectations, indicating a strong potential for high growth in the full year [2]. - The company reported a significant year-on-year increase in net profit attributable to shareholders of 146.5% for 2023, with revenue growth of 13.3% [2][9]. - The company is expected to maintain robust performance due to its strong position in the OEM and brand business segments, with a projected EPS of 1.01 CNY for 2024 [2][9]. Financial Summary - The company's revenue for 2023 is projected to be 31.0 billion CNY, with a net profit of 1.2 billion CNY, reflecting a year-on-year increase of 13.3% and 146.5% respectively [2][9]. - The operating profit for 2023 is expected to be 259 million CNY, a 50% increase from the previous year [9]. - The company’s net profit margin is projected to improve to 8.4% in 2023, up from 6.3% in 2022 [9]. Business Performance - The OEM business showed steady growth with an 11.2% increase in revenue to 24.4 billion CNY, while the brand business experienced rapid growth [2]. - The company has successfully increased its market share with existing clients like Nike and Decathlon, while also onboarding new clients such as Uniqlo [2][9]. - The gross margin for the brand business improved by 2.7 percentage points, benefiting from a higher proportion of new products and ongoing cost optimization [2][9]. Future Projections - Revenue is expected to grow to 3.819 billion CNY in 2024, with a net profit of 313 million CNY, reflecting a growth rate of 23% [9]. - The company anticipates continued growth in both the OEM and brand segments, supported by favorable downstream demand and its leading market position [2][9].